FAQs · Property Management

Dubai Property Management FAQs

Letting, tenants, service charges and running a property once you own it. The practical side of Dubai real estate.

Short answer. Service charges are annual per-square-foot fees covering building maintenance, security, chillers, insurance and a reserve fund. Most apartments run AED 10 to 30 per square foot per year, though the range spans about 5 in International City to 40 in Downtown. Villas run 2 to 6, branded towers 60 and above. All charges need RERA approval.

Service charges are the single largest recurring cost of owning Dubai property, and the number most often left out of a yield calculation.

How they work. They are charged per square foot of your unit, per year, usually billed quarterly. They cover common area maintenance and cleaning, security, building insurance, chiller and HVAC, lifts, landscaping, waste, common-area DEWA, facility management, and a reserve or sinking fund for major works like façade repair or lift replacement.

The regulation is genuinely good, and worth knowing. Under Law No. 6 of 2019 on jointly owned property, no management entity may impose or collect service charges without RERA approval first. Article 27 requires annual budgets with competitive tenders for major categories. Funds sit in dedicated escrow accounts per community through RERA’s Mollak platform, not in the manager’s general account. DLD publishes a Service Charge Index of approved rates per development.

That means you can check what a building is approved to charge before you buy, and you can challenge a charge that was never approved. Most owners never do either.

Typical ranges, AED per square foot per year:

Property Range
International City apartments 5 to 8
Discovery Gardens apartments 10 to 13
JLT apartments 13 to 17
Business Bay apartments 15 to 25
Dubai Marina apartments 14 to 28
Downtown Dubai apartments 17 to 40
Burj Khalifa 60 to 70+
Palm Jumeirah apartments 11 to 30
Arabian Ranches 2 villas around 2.44
Jumeirah Golf Estates villas 3 to 6
Emirates Hills villas 1.5 to 1.7

These are broker-compiled figures. I could not verify them against a working DLD index URL, so treat them as a guide and pull the actual approved rate for your specific building before you commit. Note how wide the spread is: International City at 5 and Burj Khalifa above 60 are both apartments. The category tells you very little. The building tells you everything.

What this does to your returns. A 900 square foot Dubai Marina apartment at AED 20 per square foot is AED 18,000 a year. On AED 105,000 of rent, that is 17% of your gross income gone before vacancy, management or anything else. On a branded tower at AED 60, the same 900 feet costs AED 54,000, and the prestige yield that looked like 5% is now well under 3.5%.

What I tell clients to do. Ask for three years of service charge history, not this year’s figure. Ask whether the reserve fund is actually funded, because an underfunded reserve on a ten-year-old tower means a special assessment is coming and it will land on whoever owns the unit then. And weight service charge into your buying decision the way you would weight the price, because over a ten-year hold it often matters more.

Key facts

  • Charged per square foot of unit area, per year, usually billed quarterly
  • Governed by Dubai Law No. 6 of 2019; RERA approval required before any charge is levied
  • Funds held in per-community escrow through RERA’s Mollak platform
  • Most apartments AED 10 to 30 per sq ft, spanning about 5 in International City to 40 in Downtown; villas AED 2 to 6; branded towers 60 and above
  • Burj Khalifa around AED 60 to 70+ per sq ft; Emirates Hills villas around AED 1.5 to 1.7
  • Covers maintenance, security, insurance, chillers, lifts, landscaping and a reserve fund

Sources: Driven Properties Service Charge Index

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Published by Totality Real Estate, a RERA-licensed brokerage, as general information about the Dubai property market. It is not legal, tax, financial or investment advice, and no advisory relationship arises from reading it. Rules and figures change — verify against primary sources and take advice in every jurisdiction that applies to you before acting.